Principles of Microeconomics / Unit 2 MIC 0112 short lesson, about 20 seconds
Substitutes and Complements
Captions available
The idea
Two goods are substitutes when a higher price for one raises demand for the other, and complements when a higher price for one lowers demand for the other.
In practice
Tea and coffee are substitutes; coffee and doughnuts are complements.
Where people slip
The change is in the other good's demand, a shift; the good whose price changed moves along its own curve.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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